What is an Offer in Compromise?
At our law firm, we are often asked by clients to help them seek an offer in compromise with the IRS. An offer in compromise to the IRS allows tax debtors to settle their debt for less than the full amount they owe. People are often interested in this method of resolving tax collection problems because they have heard that the government will write off part of what they owe under an offer.
The Elements of an Offer in Compromise
The IRS will agree to discount the amount which you owe, if you offer them something that they do not already have. From their point of view, they own all of your assets. They can foreclosure on them by means of the tax lien that they have filed. And, from their point of view, they own your income, by their ability to seize your income through levy and garnishment.
If it is practicable for you to borrow money from family or friends, you can offer them something that is acceptable to them, provided that the amount that you offer is sufficient. That amount is four years of your income, less the amount of personal expenses that they allow you. They add to that the amount which your assets are worth. It is important to have someone represent you who has a lot of experience with these calculations.
Brief and Negotiation
Here is what I bring to you, a taxpayer, that you cannot effectively do for yourself. I write the brief that makes your argument that your offer to settle your debt should be accepted. I ensure that all of the attachments to the IRS form are properly done, so that your offer is not returned due to inadequate information.
Once the IRS has a form package and brief that it will review, they will usually find a reason to negotiate the amount. My experience of the offer process and of negotiation factors with the offer group enhance your possibility of getting an offer approved, and at an amount that you can raise from others.
Further, I have appealed the rejection of an offer, with an effective outcome.
If you can meet the IRS requirements for an offer in Compromise, I can be the solution to getting an acceptance. Most offers fail, because the offers are poorly crafted, inadequate in amount, and poorly argued. I give you a realistic look at your chances, and discuss the cost of an offer, so that you can make a wise decision. If a good offer is not feasible, I help you use the rest of the alternatives available with respect to payment, so that your circumstances are as pleasant as possible.
Contact John McDuff
The quality of my work as a lawyer is well recognized by my clients & I have received the AV rating* under Martindale-Hubbell’s peer review rating system. My clients are predominantly from Austin and Central Texas, and occasionally from other states. To schedule an appointment to discuss your opportunities to make a successful offer, contact tax attorney John McDuff at 512.457.1177.
*AV, BV and CV are registered certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies.
Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the Judiciary. Martindale-Hubbell Ratings fall into two categories - legal ability and general ethical standards.